Deloitte prepares to close Principles' stores and axe jobs
Administrator is expected to lay off most of the staff at ailing retailer
Debenhams, which has bought Principles, is likely to sack most of the 2,000
staff at the failed retailer as the deal covers only the brand’s stock, but none
of its 66 stores.
On Saturday, Principles’ administrator Deloitte confirmed that 110 head
office staff had already been made redundant at the Icelandic-backed retailer.
Along with Principles’ shop stock, Debenhams has also bought the rights to
121 concessions within other stores. It also gains a temporary non-exclusive
licence to operate the Principles brand.
Deloitte will continue to trade the remaining 19 Principles stores, and a
further 172 in-store concessions not covered by the Debenhams deal.
Lee Manning of Deloitte and Joint Administrator said at the weekend: ‘Given
current market conditions, we have been unable to find a suitable buyer to take
the business on as a going concern.’
‘Regrettably, we will be closing 66 high street Principles stores, but will
be continuing to trade the remaining 19. For the time being the remaining 172
non-Debenhams concessions will also remain trading.’
Principles, which is part of the failed fashion retail group Mosaic, was
placed into administration last Monday. Mosaic is 49 per cent-owned by Baugur,
the collapsed Icelandic investment company.
Further reading:
Strong
interest in Baugur-backed Principles